Deed processing fees to increase in Montgomery County

NORRISTOWN — The Montgomery County Commissioners approved an ordinance that will increase the fees relating to the processing of deeds and mortgages for the first time in nearly two decades at their meeting on Thursday morning.

The ordinance, which will take effect on Jan. 1, 2013, increases a number of fees relating to the Affordable Housing Trust Fund and the total cost of a base deed will now cost $78, rather the $65 that had been charged since the county first instituted these fees in 1993.

“None of these fees have been increased since 1993 when they were originally put in,” said Finance Director Uri Monson.

It was decided to increase the fees in order to accommodate for the increasing costs the county faces as a result of the processing and handling of deeds and mortgages. However, various legal limitations made it difficult for the county to adjust for inflation.

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“Fees are supposed to offset the costs,” said Monson. “Obviously the cost for personnel costs, benefit costs relating to recording deeds, and technology investments have all increased dramatically over 20 years. Because we are not able to increase fees to offset those costs, those costs are effectively borne by all taxpayers rather than just those who are receiving a service.”

Even with the increased fees, however, costs in Montgomery County remain lower, sometimes dramatically, than neighboring counties, which do not necessarily have the same fee restrictions that Montgomery County does, according to Monson.

“For example, Philadelphia’s fee per deed is $230 and Delaware County is $85,” Monson explained.

Based on projections and depending on the number of properties that are bought and sold, the increased costs could bring as much as $1 million in additional revenue.

“Obviously the more deeds that are being filed (and) the more economic activity, the greater the amount that will come in,” said Monson. “Based on the last three years, which have obviously been about the lowest economic activity in terms of deed recording since the Affordable Housing Fee went in, it is probably between $1-$1.2 million (in additional revenue).”

In addition to approving the ordinance relating to deed and mortgage fees, the board also voted unanimously to rescind a resolution that authorized the designation of several properties on Washington Street as Keystone Opportunity Zone (KOZ) properties, which would modify the taxes on those properties for a finite amount of time in order to promote development.

However, in order for those properties to earn KOZ designations, all three taxing bodies that would be affected by the designation had to approve. Both the County and the Municipality of Norristown approved but the Norristown Area School District did not.

“I am disappointed that the school district opted not to act. I think the school district is missing an opportunity, where you have people like Commissioner Richards and leaders in Norristown working hard to revitalize the municipality,” said County Commissioner Chairman Josh Shapiro. “That said, the commissioners stand ready to work with the municipality in expanding and extending this Keystone Opportunity Zone in the future should there be such an opportunity that warrants it.”

The other commissioners agreed with Shapiro and also remain open to the possibility of designating the properties as KOZ in the future should another opportunity present itself.

“I fully support a Keystone Opportunity Zone in that area,” said Commissioner Leslie Richards. “I think it would be great for Norristown and I think it would be great for the county for us to see development along the riverfront.”

The Montgomery County Commissioners will next meet on Oct. 18 at 10 a.m.